Gold Price Forecast: XAU/USD downside looks protected near $1,900 – ANZ

In the view of strategists at ANZ Bank, tightening monetary policies could dampen investors’ appetite for gold. However, the yellow metal is unlikely to slide below the $1,900 level.

XAU/USD to trade near $1,950 over next three months

“Global central banks are beginning to tighten monetary policy in a bid to contain inflation. Worsening supply chain disruptions and elevated commodities prices may prompt the US Fed to make more aggressive rate hikes through the year. This could dampen investors’ appetite for gold, but its downside looks protected near $1,900/oz over the next six months.”

“We expect gold prices to trade near $1,950/oz over next three months and average $1,900/oz for this year.”